Scott Silver speaks to Investment News about the need to monitor a high-pressure industry practice that leaves some financially vulnerable
The practice of cross-selling on Wall Street is under growing scrutiny, especially in the banking and investment world. Cross-selling is suggesting or selling multiple, related products or services from the same financial enterprise to a potential customer. For example, a customer may already have a sizable investment with a large bank and be approached by a customer service representative about making a different and new type of investment with the company, or may be asked to purchase insurance or invest in a retirement plan. In these scenarios, the bank may use its existing positive relationship with a customer to help persuade them to increase their existing investment.
Banks and investment companies maintain that this is a highly effective and fair marketing strategy and that the consumer is being made aware of products and programs that apply to them, and that these connections are often made because of the strong and lasting relationship developed with the customer.
However, as Scott Silver, the managing partner at Silver Law Group and current co-chairman of the Securities and Financial Fraud group of the American Association of Justice, pointed out in a recent Investment News article, this practice can be a real problem, particularly when the client is somehow financially vulnerable, or an elderly client who is easy swayed by this persuasive tactic. Silver maintains that pushing a client toward additional products or services is a breach of fiduciary duty and should be monitored.
For example, Scott Silver, managing partner of Silver Law Group, recalls several cases where elderly clients were steered by their bank to the investment arm and encouraged to sell CD’s and buy high-risk investments which later lost substantial value. We were able to recover the victims’ money because it was unsuitable to recommend these investments. In another case, the bank encouraged an investor to borrow money to make a series of high-risk investments allegedly because of the margin interest and other profits the bank would earn.
Silver Law Group is a team of lawyers, accountants and support staff, led by Scott Silver, who are dedicated to recovering investor losses through securities arbitration and litigation. With offices in Florida, New York and Washington, DC, our firm has recovered millions of dollars from major Wall Street companies and have been successful at representing victims of Ponzi Schemes, elder financial fraud and has handled class action lawsuits all over the country. Silver Law Group makes a promise to all of their clients: we will not get paid unless our clients recover losses.
As further investigations are initiated and completed related to the complex issue of cross-selling, Silver Law Group will be a leader in representing those who may have been persuaded to improperly expand their relationship with a bank or investment firm as a result of these practices. If you would like more information about the practice of cross-selling or believe that your financial advisor is not acting in your best interest, call our legal team today at 1-800-975-4345 to review your case at no cost with one of our experienced securities arbitration attorneys.